This 6 page paper is a research proposal. The paper outlines how research can be conducted to the way FICO scores can be manipulated and managed, along with the impact that the score will have on the cost of loans to borrowers. The paper suggests primary research with the aim of assessing the impact of a credit improvement program. The bibliography cites 6 sources.
their future prospects are features that may be assessed. However, it is the way in which the credit rating is put together that may be seen as the most influential
in the short term. A better credit rating will allow resources to be maximised with the access to borrowing capital at reasonable rates. The weaker the credit rating the higher
the potential interest rate, and as such the greater the level of potential expenditure in this area, and as such, reduce the overall facility of an individual. The question this
report will ask is how the credit rating may be manipulated, and how this can take place, in an attempt to asses show reliable and accurate credit ratings really are.
The research, by necessity is limited due to time and budget constraints. The paper will make use of primary and secondary information in order to set up an experiment
which will attempt to increase the credit rating of the student. The experiment may not have time to be tested in practice, due to the lag time information, but the
theoretical implications of the outlined strategy can be assessed against the position if measures were not taken. This may also help the student to understand the cost of good and
bad credit ratings in financial figures as well as theoretical terms. At the end of the project the student should be able to assess their current credit score, the
methods that could be used to change it, and identify any risks to its reduction, and assess the total impact of any potential changes, not only in theoretical points, but
also in the cost differential between different loan rates. This may also be used to make comparisons with the general population. 2. Literature Review Credit scores are made up from